AI sell-off, Thai EV policy shift, BSP under pressure

The sharp sell-off in Asian equities, particularly in Korea and Taiwan, is unlikely to have a major direct economic impact. However, concerns that global tech firms could scale back AI investment pose a bigger risk to the outlook. Meanwhile, Thailand is raising taxes on imported EVs to protect domestic carmakers from Chinese competition, though the benefits may be limited unless more of the EV supply chain shifts to the country. In the Philippines, October’s inflation surge has fuelled expectations of another rate hike, but we expect the BSP to keep rates on hold in December as energy price pressures ease and economic growth remains weak.